Posted on Friday February 1st, 2019

India is the largest importer of the gold and everybody knows the affinity of Indians for gold. Gold ornaments are not just a piece of jewellery but people buy them as an investment, which they can use to fund their urgent cash requirements. It is the form of backup that have the power to rescue you from financial crunch. Whether it is an medical emergency, business expansion or other financial liabilities, pledging your gold ornaments with a lender can help you to “Avail a Loan Against Gold“. The modern financial ecology has changed the traditional way of lending-borrowing the gold jewellery and now it is provided by all banks and non- banking financial companies too.Gold Loan from ShubhBank is the popular option nowadays as it is easy to acquire. It fulfils your purpose by providing the desired cash amount without much hassle. The loan requests at our bank are processed quickly and require minimal documentation. It is always a secured loan and enables us to grant you the loan at lower interest rates. The loan has short repayment tenure so you can pay it in alternative ways:

• Pay interest rate as EMI and Principal later.
• Bullet Repayment. (repay entire amount of Principal and Interest at the end of loan term)
• Regular EMI options.

Gold loans are easier to process and grant and have lots of other benefits as compare to other loan products that are listed below:

RATE OF INTEREST: The interest rate of gold loan is cheaper compared to other unsecured loans. It can be obtained for 12%-16% where as interest rates on other loans hover between 12%-24%.

PAYMENT OF RATE OF INTEREST AND PRINCIPAL AMOUNT: The facility to repay is unique to gold loan as compare to other loans. You can pay only the interest amount each month and pay the principal amount at the time of closing your gold loan.

EQUATED MONTHLY INSTALLMENTS: In case of other loans, you have to pay the EMIs based on your repayment capacity but in gold loan you do not have to worry about your low income. It is secured loan so EMI is decided on the values of the gold being pledged. First take care of the loan amount, don’t secure a loan quantum that may be difficult to repay in future.

TIME OF LOAN DISBURSAL: The disbursal time for gold loan is less than a hour comparable to other loan schemes.

DOCUMENTATION: The minimal documentation is required for being a secured loan. All you need to produce is original gold, ID and address proof.

The only downside to gold loan is the possibility of losing your pledged gold. If you fail to repay the loan, bank can auction your ornaments to recover their dues. So make sure you assess the pros and cons of each option before taking the loan. Gold loan has various perks and help you get financial aid in an instant so repay it on time to secure it next time a need arises for you. It provides you the much needed cash at time of financial crisis and on closure, you can again shine with eternal glow and mesmerising beauty to embrace the ownership of your most valued asset.